Cisco Cuts Workforce by 7% to Speed Transition to Software

(Bloomberg) -- Cisco Systems Inc., the biggest maker of equipment that runs the internet, plans to cut about 7 percent of its workforce, trying to recast itself as a provider of software-based systems and services.

The company will eliminate 5,500 positions from its workforce of more than 73,700, Cisco said Wednesday in a statement. Savings from the job reductions will be invested in newer businesses that Cisco expects to fuel sales growth, such as cloud computing and connected devices. The company said it will take charges totaling about $700 million associated with the restructuring.